Judge Recommends Regional Funding Change for River Dell; Awaits Commissioner's OK

Almost nine months since the initial arguments were given over a two-day span before Administrative Law Judge Leslie Z. Celentano, the boroughs of Oradell and River Edge have received an answer to the ongoing River Dell Regional school district funding inequality fight.

Celentano has recommended that the state change the funding formula for River Dell to an 80-20 mix formula and placing the majority of the tax burden for the district on River Edge. Her decision called for a two-year phase in period.

Oradell which sends approximately 653 students to the River Dell district spends about $20,360 per pupil. River Edge, with 1,024 students, pays about $14,330 for each of its students.

According to James Kirtland, a CPA who testified on behalf of Oradell during the hearings, River Edge homeowners would pay $540 more in annual taxes, while Oradell residents would save $622.

River Edge has roughly 11,300 residents with an average income of $109,000 and an average assessed home of $436,000, as of the July 2011 hearing. There are approximately 8,000 residents in Oradell, an average household income of $147,000, and the average assessed home is $531,722.

According to Celentano's decision, any approval of her recommendation would not open any potential "floodgates" relating to the change to the funding formula for each fo the 70 existing regional districts. Instead, it may only impact a handful of districts that currently face a funding disparity including the Pascack Valley Regional District.

Residents had previously defeated a public referendum in April 2011 to change the district's funding formula. The taxpayers in River Edge overwhelming voted 3,374 to 84 against while in Oradell the results were 2,412 to 141 in favor. The final overall tally was 3,515 to 2,498 against the change.

A prior attempt in 2009 to withdraw from the district and subsequent referendum request for withdrawal was denied by then acting Commission of Education Lucille Davy. At that time, Davy recommended that the change in funding formula be put to the voters.

When the regional district was first created, the system was funded based on a per pupil basis. But the state amended the law in 1931 to base funding on property tax values. It was again amended in the early 1990s to allow districts to base the formula on either a per pupil basis, property values or a combination of both.

Officials in River Edge could file an appeal to Celentano's recommendation. Currently there is no time frame for when Cerf may issue his decision as he can either accept, reject or modify her recommendation.

Under the  the average Oradell homeowner is expected to see a $257 increase while River Edge taxpayers will see a $19 reduction.

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